Islamic Finance

Topics: Stock market, Price, Stock Pages: 3 (1070 words) Published: June 23, 2013
1Muslim Bank enters into Modaraba transaction with five Modarib, workout the transactions on prescribe format on the following terms: ➢ Ali Associates Rs.800,000 cost@10%, Profit 40:60 proceeds Rs.810,000 ➢ Scan Group Rs.700,000 cost@7% Profit 35:65 Expected Proceeds 812,000 ➢ Golden Spot Rs.600,000 cost @8% profit 55:45 Proceeds Rs.770,000 ➢ Karachi Electric Rs.400,000 cost @9% profit 50:50 Proceeds Rs.578,000 ➢ Sailor Services Rs.100,000 @5% Profit 60:40 Proceed 55,000.

2Muslim Bank enters into Modaraba transaction with five Modarib, workout the transactions on prescribe format on the following terms: ➢ Ali Associates Rs.100,000 cost@7%, Profit 40:60 proceeds Rs.210,000 ➢ Scan Group Rs.200,000 cost@8% Profit 35:65 Expected Proceeds 312,000 ➢ Golden Spot Rs.300,000 cost @9% profit 55:45 Proceeds Rs.470,000 ➢ Karachi Electric Rs.400,000 cost @10% profit 50:50 Proceeds Rs.578,000 ➢ Sailor Services Rs.500,000 @5% Profit 60:40 Proceed 455,000.

ABC Bank enters into Modaraba transaction with five Modaribs, workout the transactions on prescribe format on the following terms: ➢ 01 Associates Rs.20,000 Cost@7%, Profit 40:60 proceeds Rs.40,000 ➢ 02 Group Rs.70,000 Cost@9% Profit 35:65 Expected Proceeds 92,000 ➢ 03 Enterprises Rs.50,000 Cost @6% profit 55:45 Proceeds Rs.70,000 ➢ 04 Pvt Ltd Rs.90,000 Cost @10% profit 50:50 Proceeds Rs.120,000 ➢ 05 Builders Rs.40,000 @5.5% Profit 60:40 Proceed 35,000.

✓ ABC bank has the relationship of Mudarbah with Mr. Ameen @95:05

Calculate all.

ABC Services is holding 1 million shares of Rs.100 each as its total Net worth. The company decided to obtain working capital financing under Musharka mode of financing by liquidating 30% of its shares to Bank Muslim for 5 years terms. During the period company reported result Profit & Loss of (Rs.250,000), (410,000), Rs.355,000, Rs.750,000 & 810,000. In the fifth year the company buyout the entire shares from the Bank Muslim at prevailing share price...
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